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UPDATE 2-Calif. reinstates Tessera solar project approval

by (c) Copyright Thomson Reuters 2010. Click For Restrictions. http://about.reuters.com/fulllegal.asp | Thomson Reuters Foundation
Wednesday, 1 December 2010 21:23 GMT

* ${esc.dollar}2 billion plant would have 663.5 MW capacity

* Opponents have 30 days to challenge

(Adds background on plant)

SAN FRANCISCO, Dec 1 (Reuters) - The California Energy Commission reinstated approval for a controversial ${esc.dollar}2 billion solar power plant to be built by NTR Holding's <NTRb.CO> Tessera Solar that opponents had said was wrongly licensed.

Last month, the commission withdrew its decision granting approval for the 663.5 megawatt Calico plant after the California Unions for Reliable Energy said the CEC had not properly filed written findings about the plant's impact on local wildlife.

On Wednesday, energy commissioners set a 30-day notice for opponents to challenge approval of the project that is planned for the Southern California desert.

Tessera Solar is racing to begin construction by the end of the year to be eligible for a federal cash grant program that covers 30 percent of the cost of renewable energy projects.

With the approval, Tessera can begin construction immediately.

The Sierra Club and California Unions for Reliable Energy told commissioners they are considering filing a legal challenge to Calico over its impact on the imperiled desert tortoise and other wildlife.

Calico is one of seven huge solar thermal power plants that the energy commission has licensed over the past three months.

Tessera has signed a contract to supply electricity generated by Calico to utility Edison International's <EIX.N> Southern California Edison, which is counting on the project to help it meet its renewable energy targets.

Tessera plans to deploy 26,540 solar dishes called Suncatchers at Calico. Resembling giant mirrored satellite receivers, each Suncatcher is 40 feet high and 38 feet wide and generates electricity by focusing the sun on a Stirling engine to heat hydrogen gas. As the gas expands, it drives pistons to generate electricity. (Reporting by Todd Woody; editing by Andre Grenon)

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